Jeremy Stein, who is stepping down from the Federal Reserve board of governors later this month, has warned that attempts to manage market volatility by virtue of communication policies like forward guidance may be self-defeating.

Stein told an audience at New York University yesterday that he had "not fully appreciated" before joining the Fed in 2012 how challenging the process of communicating about monetary policy can be. He added that there were "very real limits" to what "even the most